MGMT 345 1st Edition Lecture 2Outline of Last Lecture I. Weekly HomeworkII. Exam InformationIII. Extra Information to help you succeedOutline of Current Lecture I. Managing in the Digital WorldII. 5 IT Megatrends1. Mobile computing2. Social media3. Big data4. Cloud computing5. ConsumerizationII. Key Factors Enabling GlobalizationIII. Rise of Information OutsourcingIV. Challenges to reaching global marketsV. Defining Information SystemsVI. Additional Things to RememberCurrent Lecture:Managing in the Digital World:The information age followed the industrial age, which followed the agricultural/handiwork age.When thinking of these “ages” in waves, although the book considers cloud computing to be thenext wave, Mr. Guggenheim believes that it will be artificial intelligence and machine learning. Alan Turing said that he test of a computer was whether it could be distinguished from a humanin a blind test. IBM’s “Watson” has already passed that test. 65% of data processing jobs can be replaced by artificial intelligence.*Remember*: Toyota uses a company called Lithium Technologies (which uses artificial intelligence) to scan all social media in real time and interpret the posts so that they can be countered in a way that keeps customers happier. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.5 IT Megatrends:1) Mobile Computing- in the post PC era we are currently in, increased collaboration is a given. The ability to manage in real time is now available and there are many new ways to reach customers.2) Social Media- Facebook currently has over 800 million active users. Organizations use social media to connect with customers and encourage employee connection.3) Big Data- IDC estimates that in 2011, 1.8 zettabytes of data were generated and consumed. In perspective that is 1.8 trillion gigabytes, or 57 billion 32GB ipods. That number is estimated to grow by 50x by 2020. 4) Cloud Computing- Web technologies enable the internet to be used as the platform for applications and data. *Remember* Virtualization (virtual environment on hardware), SOA (service oriented architecture), WSDL (access a program through one app, but manyusers use it) *Remember* Cloud: IAAS, PAAS, & SAAS5) Consumerization- This may be the most significant trend affecting organizational IT personnel. Today’s employees bring their own devices to work, and use their own email,social networking, etc. Key Factors Enabling Globalization:- Fall of the Berlin Wall- Windows operating system- Internet (Netscape Web Browser)- Falling telecommunications costsRise of Information Outsourcing: (moving business processes or tasks to another company)- Facilitated by declining telecommunication costs- Driven by cost reductiono Reduced labor cost for low-skilled laboro Reduced labor cost for relatively high-skilled labor- Outsourcing hurts the company when knowledge is outsourced (this is one reason that cloud computing is so helpful! It keeps all the knowledge with the original company.)- Falling transportation cost enable outsourcing. For example, shipping a bottle of wine from Australia to Europe costs only a few cents.Challenges to Reaching Global Markets:- Government (political instability, regulations, privacy, standards, censorship, etc.)- Geopolitical (time zones, infrastructure, workforce, demographics, expertise, etc.)- CulturalDefining Information Systems:Data- raw numbersInformation- formatted dataKnowledge- data relationships5 Components of Information Systems:1) People2) Telecommunication3) Hardware4) Data5) SoftwareAdditional Things to Remember:In 2005 Piccoli and Ives did a study to determine the connections between IT and competitive advantage. 2 things were shown to be connected: IT Managerial Skills & Relationships between IT and other units/departmentsThe first computer was credited to Charles Babbage who handled all of the hardware stuff, but his assistant, a woman named Ada Lovelace, invented the software.A Sony PS3 contains a processor called “The Cell.” If you link 8 of these together you can create a supercomputer.The group hiring the most Computer Science PHDs is the NSA, the second most is Wall Street.The Garter Group says that by 2017 marketing will spend more on IT that IT spends on